After chatting with his wife and finishing dinner, rain began to fall outside the passenger ship. The rain of early winter brought a bone-chilling cold. Ryan held his son, Devonshire, teaching him to read and speak. The little boy was very close to his father, giving him a kiss on the cheek before laughing happily. Suria, sitting beside them, watched them play with a gentle smile. The lady knight preferred that Devonshire be close to Ryan, believing that if a boy spent too much time with women, he wouldn't grow up to be a strong knight.
After playing for a while, Devonshire grew sleepy. Sylvia came over to take him to bed, and Ryan turned to Suria. "Suria, you should rest. I'm going to take a walk on the deck."
"You're going out in the rain?" Suria asked casually.
"I've heard that rainy days are perfect for a stroll!" Ryan joked. "I saw Calard and Alfred passing by in the corridor, chatting. I'll go see what they're up to."
"Alright, but don't stay out too long," Suria replied, signaling that he should come back soon: "We can talk more after Devonshire is asleep."
Ryan left the room, stepping into the gloomy, rainy weather. The sky over the Reik River was shrouded in clouds, thunder rumbling above. Rain dripped steadily onto the river, the banks, and the ship's deck. The rain wasn't heavy, but it was persistent. Ryan looked up at the overcast sky as he walked down the corridor toward the deck.
The banks of the Reik River were lined with towns and watchtowers, and the river was busy with ships, many of which were drenched by the rain and had to temporarily dock. Seeing Ryan step out, the veteran guards at the door saluted. "Duke!"
"Good work." Ryan patted one of the guards on the shoulder. "Where's Bertrand?"
"Sir Bertrand is resting in his room," one of the guards replied loudly.
"Alright, has anything happened?" Ryan asked casually.
"Nothing much, except this cursed weather!" The guard saluted again.
"Haha~" Ryan laughed, walking along the corridor and out onto the deck. The cold wind blew his black hair about. As he reached the second-floor deck, he spotted Alfred and Calard standing there, looking at the scenery. The Lady's chosen champion walked over. "Alfred, Calard, enjoying the view at this hour? Aren't you afraid of getting soaked by a wave?"
"The cabin is too stuffy, and it reeks," Calard, dressed in a Bretonnian count's attire, said, his brown hair blowing in the wind. The Holy Grail knight shook his head. "It smells of money."
"Indeed, all around us, disgusting deals are being made," Alfred added, shaking his head in frustration. "In the cabin, those merchants are sitting together, talking about nothing but gold, gold, and more gold."
Ryan wasn't the only one returning to Bretonnia. Along with him and Calard's knightly army, many merchants from Nuln and even some minor nobles had boarded the ship bound for Bretonnia. With Ryan's assurance, they were eager to try their luck in Bretonnia, especially in Mousillon. The potential business opportunities in the revitalized knightly kingdom were like blood in the water for these Nuln merchants.
Ryan welcomed them with open arms. There was no reason not to; investment was one of the quickest ways to revive Mousillon.
"It's natural, the pursuit of profit is human nature—or rather, the nature of merchants," Ryan said as he walked a few steps and ran his hand along the wet railing. He smiled, "Just as the pursuit of glory is the nature of knights, and the pursuit of piety is the nature of clerics."
"I understand that," Calard replied, moving to stand beside Ryan as he gazed out at the rain. "But, Ryan, you once told me that a merchant's pursuit of gold is like a knight's pursuit of the Holy Grail."
"Indeed. I have no right to stop merchants from chasing profit, just as I have no right to stop knights from seeking the Grail," Ryan closed his eyes, enjoying the cool wind. "So why are you troubled by this?"
"I'm just displeased," Calard's tone was firm as he took a step sideways and quickly moved back beside Ryan. "Ryan, do you know what those merchants were discussing?"
"What were they talking about?" Ryan asked.
"They were saying how great it is that Bretonnia has no property taxes, only tolls and city taxes. They were excited about the fortune they could make!" Alfred was clearly annoyed. "What a bunch of unscrupulous merchants! They were thrilled about Bretonnia's low taxes, especially that young Krupp baron. He was ecstatic about finally escaping Nuln's high commercial taxes."
"Hahaha! Did he also say that if possible, he'd move his entire family's business from Nuln to Mousillon?" Ryan couldn't help but laugh. "I bet if he really tried, he'd end up on Nuln's gallows. Emilia wouldn't let him get away with that."
"Not quite," Alfred chuckled too but then shook his head. "But Ryan, sometimes I wonder, are these wealthy people going too far? They make so much money while so many poor people are starving. Why can't they help the needy?"
"Haven't the rich donated enough to the church?" Ryan disagreed, shaking his head. "Take that young Krupp baron, for example. He's donated at least fifty thousand gold marks to the Church of Justice over the past decade. During the Battle of Nuln, he and his father donated another twenty-five thousand. We can't ask for more."
Alfred and Calard had no response to that. The new Patriarch of West Bretonnia shrugged. "Alright, perhaps that young Krupp baron is generous, but not all merchants are like him. In Nuln, I saw many merchants only focused on making money, ignoring the needs of the people. I can't say they should be hanged for it, but…"
"Hah, Alfred, you've grown," Ryan nodded, smiling. "Just the fact that you didn't go smash their heads in earns you praise from me."
"I'm long past the age of impulsiveness. If this had been ten years ago, when I first went to Marienburg with you, it might have been different," Alfred shrugged. "But the Empire's laws protect the sanctity and freedom of property. I just wonder, isn't there a way to deal with these wealthy people? Like taxing them more? Or curbing their excessive growth?"
"I agree. We can't let these merchants think making money is too easy," Calard added.
"Don't be ridiculous, Alfred, Calard," Ryan looked out at the Reik River and the rain, sighing. "Taxing the rich heavily? In reality, the wealthier and more powerful someone is, the harder it is to tax them. Take my father-in-law, François, for example. Everyone in Bretonnia knows he and his Duchy of Quenelles are the richest. He owns several vineyards, making over fifty thousand gold crowns annually just from wine trade. So, which of you dares to tell him that he's making too much and needs to pay heavy taxes?"
François was a Holy Grail knight of considerable wealth and grain reserves, with noble blood and significant influence within the kingdom. He also commanded an elite unit known as the "Quenelles Champion Knights Brotherhood." Alfred and Calard could only shake their heads and smile wryly at the thought.
One misstep in dealing with this could lead to war.
"The wealthier and more powerful someone is, the harder it is to tax them. Alfred, you should understand this better than anyone," Ryan continued, explaining the complexities of taxation as he looked out at the cold, rainy evening. "Merchants and nobles won't just pay heavy taxes. Even ordinary taxes, they'll either find ways to evade them or pass the burden down the line. For example, if Emilia were to tax the Krupp family heavily, the result would be a rise in prices across Nuln, including the cost of guns and cannons."
Alfred and Calard both grew serious. They realized Ryan had something important to say.
There are generally three methods of personal taxation: poll taxes, proportional taxes, and progressive taxes.
Poll taxes seem fair but are, in fact, the most unfair and problematic, hitting the poor the hardest while the rich are largely unaffected.
Proportional taxes are better but still problematic. For instance, a poor farmer earning three gold crowns a year can barely feed his family, and a tithe would be devastating. A craftsman earning thirty gold crowns would also feel the pinch, but for a minor noble earning three hundred gold crowns, thirty crowns in taxes might not be a big deal.
And even with those thirty gold crowns in taxes, the tax collector would be lucky to collect fifteen, as the noble's steward would find ways to fudge the books and avoid paying the full amount.
Then there's progressive taxation, which Ryan likened to the system in his past life. The poor pay no taxes, the middle class pays little, and the rich pay the most. This system is inherently unfair, but most people see it as the fairest.
But the rich won't just sit back and let themselves be taxed. They have countless ways to avoid it. For example, in Ryan's past life, a billionaire named Li Ka-shing became a British lord and a Canadian citizen, or another tycoon who paid himself a salary of just one dollar, far below the taxable threshold.
Even more extreme was when France imposed a 75% tax on incomes over one million euros. The tax was so heavy that
80% of the population supported it, and many celebrated with drinks. But in the first year of the tax, prices skyrocketed by nearly 25%, hitting the poor the hardest. Thousands of millionaires changed their nationality, and the outflow of capital devastated the country's economy. In the end, it was the poor and middle class who paid the price.
Ryan explained some of these issues, leaving Alfred and Calard sweating. He concluded, "Fairness and justice in taxation can never fully align. Moreover, as you said, Alfred, the sanctity and freedom of property are protected by Imperial law. And as merchants donate large sums to the church and seek its endorsement, the church also takes on the role of protecting merchants. We can't just seize their property."
Alfred, both frustrated and resigned, asked, "So there's no way to make all the nobles and merchants pay their fair share of taxes?"
"Oh, there is." Ryan's smile didn't fade as he glanced at the Holy Grail badge on his chest and then at Calard's. He said with a hint of amusement, "At least in Bretonnia, there's one tax that all knightly nobles pay. Not only do they pay it honestly, but they dare not evade, avoid, or play tricks with it. Everyone pays it diligently, often paying more than required. And this is one of the reasons Bretonnia has stood strong for a thousand years, despite its many problems and darkness."
Calard understood immediately and nodded repeatedly. "Indeed, no one dares not to pay this tax."
"What is it?" Alfred asked curiously. "What kind of tax has such magical power?"
"That tax is…"
_________________________
[Check out my Patreon for +200 additional chapters in all my fanfics! $5 for all!!]
[w w w . p a t r e o n .com / INNIT]
[+50 PowerStones = +1 Chapter] [+5 Reviews = +1 Chapter]